African Gold buys gold resource in Ghana

African Gold has bought 70% of the Konongo Owere 950,000 oz gold resource in Ghana for $4m. The percentage of the mining licences covers 125 sq km in the Konongo Owere district of the Ashanti Gold Belt in Ghana and has an option to acquire an additional 10%.

Payment will be made in two stages, $2m cash plus US $1m in African Gold shares immediately. A further payment of $1m cash will be made after 180 days.

In a statement the firm says that an independent report indicates the licence area contains a resource in excess of 950,000 ounces of gold at an average grade of 2.30 g/t gold.

The fism says diamond drilling will commence in the near future and will focus on converting inferred and indicated ounces to the measured category.

Three other properties in the Ashanti Gold belt are under option to African Gold and are the subject of ongoing due diligence. Change of Nominated Advisor Canaccord have been appointed nominated advisor and stockbroker to the company.

In other news Oliver Baring has been appointed joint-chairman of African Gold. He will focus on the development strategy of the company. He is executive chairman of First Africa Group, and has recently retired as managing director of the corporate finance division of UBS, where he held responsibility for both Africa and mining.